TDS @ 20 % without PAN as well as in case of Invalid PAN ?

776 views 1 replies

This clause is applicable to all type of deductee .The Maximum TDS rate is applicable in following case

  1. if pan is not provided by the deductee .[section 206AA(1)]
  2. If pan provided by the the deductee is invalid.[section 206AA(6) read with 206AA(1)]



Now ,the question is here ,how can deductor can check correctness of the pan ? There is no straight way to verify the pan ,But I have Listed few thing hereunder which may be helpful for deductor .
  1. First Thing the deductor should  do is that demand photocopies of the pan card from regular service providers , agents etc.
  2. If photocopies has not been provided by the deductee and Just pan (number) is provided then verify the structure of pan
    • Pan must be of 10 digits .
    • First five digit and tenth digit must be alphabet(A_Z)
    • Sixth to Ninth digit must be Number (0,1,2,3,4,5,6,7,8,9)
    • Forth digit of Pan represent Assessee status,and if a Partnership firm provides pan with forth digit as P or C then it means the pan is incorrect 
      • C — Company
      • P — Person
      • H — Hindu Undivided Family (HUF)
      • F — Firm
      • A — Association of Persons (AOP)
      • T — AOP (Trust)
      • B — Body of Individuals (BOI)
      • L — Local Authority
      • J — Artificial Juridical Person
      • G — Govt
    • Fifth Digit of Pan represent Surname as per Data filled in the application in case of Individual assessees and in other case first name .




Replies (1)

Here the summery of TDS rates are given for various services for your references.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details